Foreclosures can be a great way to purchase a house at a discounted rate OR an affordable investment property that can generate revenue—but do keep in mind that the bank is unlikely to sell the property for less than its market value unless the property has been significantly damaged.
Whatever your motive in purchasing a Regina Property that has been foreclosed on, there are a few things that you should understand and consider.
Firstly, in Saskatchewan, a foreclosure is seen in our province as a “Judicial Sale”. This means that the lenders need to petition to the judicial court for permission to sell the home—which is a costly and time-consuming process. This process in which the lenders have to petition for permission to sell the home can last up to a year, depending on the home owners cooperation. Note: this happens way before the home hits the market.
What you need to know when purchasing a foreclosure that can work in your favour:
Lenders are eager to recuperate their loss and want to sell the Regina property as quickly as possible. Keeping in mind that our province goes by the “Judicial Sale” method, the lenders are extremely motivated to sell the property. This may allow a buyer to receive a cheaper-than-market price on the property.
That being said, if there is significant interest on the property, you may get into a bidding war which will likely drive the price up.
Any liens, backdated taxes or outstanding mortgage payments remaining on the property will be expunged allowing you to step into the home with a clean slate and a clear title.
What you need to be aware and cautious of when purchasing a foreclosure:
“What you see is what you get” (WYSIWYG) rings true to a Regina property that is foreclosed. Repo houses are sold “as is”. This translates sometimes to money needing to be invested into the property to repair and/or maintain the home depending on its condition.
Foreclosures that have been on the market for a long time tend to be in more disrepair as property conditions deteriorate over time. It’s not necessary that you avoid these properties altogether but you must be weary of their unseen issues.
The buyer is allowed to have a home inspection on the property but upon any major issues that are discovered; do not expect to negotiate the cost of repair.
Remember, homes maintain their value by being maintained and most foreclosures have been abandoned.
Key takeaways when purchasing a foreclosure:
Reaching out to a real estate agent and communicating what you want in a Regina property will be the best way to start your foreclosure search. Will this be your main residence or an investment property? Are there particular areas and features that you desire?
Be patient. Do not pull the trigger on the first foreclosure that you come by. To find the perfect foreclosure that meets your needs and wants, you will need to be prepared to wait for your match to come on the market.
Good value trumps cheap homes!
Contact Me To Learn More About Regina Property For Sale
Hopefully these tips can help provide insight or aid the success of your Regina property for sale. If you have any questions or would like more information on any of these details, please feel free to reach out to me by phone at (306) 552-7047 or by using my online contact form.
Kelsey Smith Is Regina’s Choice
Choosing the right Realtor® is key to ensure a positive and successful real estate transaction. Kelsey Smith promises to deliver the education and time necessary to buy or sell your Regina home. Call 1-306-552-7047 and rest easy knowing you have made the right choice.